Yesterday, the Senate approved the PPP Extension Act of 2021, H.R. 1799 extending the Paycheck Protection Program (PPP) application deadline from March 31 to May 31. This will allow an additional 60 days for businesses to apply for 1st and 2nd draw PPP loans and provides an additional 30 days for the Small Business Administration (SBA) to finish processing applications received by May 31.
The final vote to approve the PPP Extension Act of 2021, H.R. 1799, was 92–7. The legislation will now be sent to President Biden to be signed into law.
In a press release, the AICPA said that the additional 60 days provided by the bill will greatly help small businesses, not-for-profits, and the CPAs that serve them complete existing PPP loan applications and file new ones. The extension act also provides the SBA time to address significant loan application process challenges, including confusing validation and error codes, delayed guidance, and changes to the PPP loan amount calculation for self-employed borrowers.
The PPP Extension Act does not provide any additional funding for the current round of the PPP. The program, which was established by the CARES Act to provide forgivable funding to small businesses, reopened in January with $284 billion in funding. Through March 21, the SBA had awarded more than 3.1 million loans worth a total of nearly $196 billion. At the current lending rate, the SBA estimates that the PPP should have enough funding to last through mid-April.
If you have any questions about this please contact your ALL advisor or call us at 617-738-5200.
Source: AICPA
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